The newest Pug is expected to hit local showrooms late this year.

Peugeot Automobiles Australia spokesman, Mark McCartney, says the company is in the process of working out specifications and pricing.

However, he expects the updated 207 range to be close in price to the existing models, which means an entry starter around $20,990.

Outside, the car's overall shape is the same but there is a new grille, LED tail-lights, door protection mouldings and more chrome detailing.

At the front the car's gaping grille has been cleaned up and softened while the foglights on the upper-spec models have been moved from around the grille to the extreme corners of the front bumper.

The XT, HDi, SW and GTi range also boasts a new set of Australian-themed 15-inch, 16-inch and 17-inch alloys, interestingly named "Brisbane", "Canberra" and "Melbourne".

Inside there are new materials, a one-touch indicator for lane changing, remote controlled window closing from the ignition key, easier to use air conditioning controls and soft-touch plastics on the dashboard and around the cabin that are designed to lift quality levels.

European versions are also likely to get a standard USB connection as well as Bluetooth.

In Europe 12 different engines are available but Australia is likely to stick with the existing 1.4-litre entry models as well as the mid and top-range 1.6-litre HDi, 1.6-litre petrol four cylinder and turbocharged units.

However, all the 207 engines will now be Euro V compliant.

Peugeot has also launched a "green" low-emission 207 for Europe with a 66kW HDi engine, low-rolling resistance tyres and aerodynamic aids.

The ultra-efficient HDi FAP has CO2 emissions of just 99g/km and fuel economy of 3.8 litres/100km.

The 207 has been Europe's top selling small car for the past two years.

In Australia it is the most popular Peugeot after the 308.

Reports from Europe suggest Aston Martin will use the Toyota iQ to produce a city car.

Aston Martin has apparently released this photo of an iQ, with the nose restyled to take the signature Aston Martin shark maw.

This is said to be just a concept car. However some reports suggest it could go on sale next year. Some pundits believe it will only be offered to current Aston owners at first, and then to the rest of the public. A lot of whom could be killed in the crush to get an Aston Martin badge in the garage for an estimated 23,000 euro – about $50,000.

The addition of a car like the Cygnet to the famed British range would reduce its overall emissions ratings. And in a world that’s leaning more towards that goal, this story could well be true.

The Herald Sun reports Australia's advertising watchdog outlawed the ad for a BMW convertible because driving stunts shown in the clip would break Australian road rule laws.

The ad features the BMW Z4 coupe creating a giant artwork in a warehouse by driving with painted tyres, and includes the vehicle spinning its wheels and skidding.

The clip, which has been used around the world, was made by artist Robin Rhode and famed film director Ridley Scott's son, Jake.

The ad sparked a backlash; one viewer told the Advertising Standards Bureau and Channel 9 the clip "would encourage car hoons to spin and burn their tyres".

The watchdog banned the ad on the basis it depicted illegal driving.

"The board noted that the advertisement does depict in a number of places the driver intentionally allowing the wheels of the car to lose traction and perform ... a four-wheel drift," the bureau's judgment said.

BMW hit back, claiming it was art, not hooning.

"We believe the audience can distinguish between fantasy and reality," a statement from BMW to the board said.

Read the full story at the Herald Sun

Get the sunscreen out because Citroen has the answer for all those sun-worshippers.

A panoramic windscreen will be standard on the new C3 when it lobs in Australia in 12 months.

The French carmaker has borrowed the panorama windscreen idea from its C4 Picasso people mover, called the Zenith, and given the new C3 an expansive view of the world.

Combined with slimmer A-pillars, the exceptionally long windscreen expands the front occupants’ field of vision by up to 80 per cent.

But those worried about excessive glare need not worry.

The glass has a progressive tint that smooths the transition from the clear frontal view to providing sun protection from above.

Like the Picasso, large visors can be flipped forward to block out the sun.

A five-door will arrive first in Europe with a coupe and Pluriel convertibles planned.

Ateco Automotive Pty Ltd spokesman, Edward Rowe, says it is too early to talk specifications or pricing for the new five-door hatch but he expects it to be competitive.

Pricing and drivetrains

Pricing is tipped to be close to the current car, around $23,990.

Australia is expected to get a range of four-cylinder petrol and HDi diesel units but is unlikely to get the newer frugal three-cylinder engines planned for Europe that emit less than 100g/km of CO2.

"These cars are designed for tax regimes that do not exist in Australia," Rowe says.

Appearance and fit-out

On the outside, the C3 adopts an evolutionary approach to its design but borrows some cues from the DS Concept hatch.

It gets a flatter roofline, more pronounced grille and headlight treatment.

Inside the trim moves up a notch in quality, with new materials like a thermo-coated colour dash, highlighted with grey or gloss brushed aluminium and chrome detailing.

In Europe, the C3 five-door hatch is one of the most compact vehicles in its segment.

At 3940mm long, the new car is 90mm longer while width has grown 43mm while luggage space remains around 300 litres.

Citroen has managed to keep the C3's weight the same as the outgoing model while its turning circle has been reduced from 10.7m to 10.2m.

Equipment

Other fuel-saving features are second-generation stop-start systems, plus new five and six-speed electronic gearboxes.

In-car features include USB connectivity, iPod compatibility, Bluetooth and satellite navigation on high-end European versions.

Citroen has sold more than 2 million C3s globally but apart from Citroen fans here, the car has not sold in strong numbers locally.

Last year, just 423 were sold, against a 2007 figure of 696.

The current 1.6-litre HDi turbo diesel has hybrid busting fuel economy of 4.4 litres/100km and CO2 emissions of just 120g/km.

...after posting a $70.2 million loss for 2008.

Faced with a parent in Chapter II bankruptcy in the United States and the collapse of new cars sales locally, Reuss, said the company's senior leadership team was doing everything possible to get the company back into the black.

"This includes attacking the revenue and cost sides of the business with equal enthusiasm," he said.

Reuss said GM-Holden had a small after-tax net profit of $6.6 million for the year ending December 31 before a series of special, on-off charges wiped this out.

The charges amounted to $76.8 million, which related mainly to the decommissioning of the Family II engine plant in Melbourne.

"In addition to this we made top-up contributions of $50.3 million to our Defined Benefits Scheme as the world financial markets began to deteriorate," Reuss said.

Softening Holden Commodore sales, as well as other Holden models, reduced revenues from $6.1 billion in 2007 to $5.8 billion last year.

"This result was disappointing because the organisation was well placed to make a healthy profit in Australia before world markets fell in the third quarter of 2008," Reuss said.

The company's total sales revenue was $5.4 billion compared to $5.7 billion in 2007.

Commodore and V6 engine exports held up well, helping lift revenue from $1.6 billion to $1.9 billion, reflecting a full year of Pontiac G8 sales in the United States.

Reuss said GM-Holden remained committed to research and development locally, spending $360 million.

He said the company was focused on its long-term future.

It intends rolling out more fuel efficient Commodores powered by LPG and E85 ethanol as well as introducing other fuel saving technologies and building the Cruze four-cylinder sedan from next year at its Adelaide plant.

After the collapse of its G8 exports to the US, it is also pursuing new export markets for its cars.

Designed at a time of great optimism in Japan, it is everything you would expect from a culture and company embarking on a plan to break onto the world stage. Without its own design heritage to draw on, Mazda looked to both the European and American styles of the period when developing their new showpiece car.

The Cosmo successfully blended two very different design languages into one cohesive package and introduced a new unique style for upcoming Japanese designers to reference.

With the front, Cosmo designer Heiji Kobayashi clearly looked to Ferrari and Jaguar for influence. The headlights are very similar to the E-Type Jag, while the bonnet and front fenders take cues from the Pinnifarina-designed Ferrari Superfast range that was the height of luxury and style in the sixties. The rear clearly used the America concept showcar styles and in particular the Ford Thunderbird.

Mazda in the early 1960s was embarking on a transformation, and commencing a drive into the international market. Their philosophy was to differentiate themselves from the other emerging Japanese carmakers and they chose to do this by focusing on development of the Wankel rotary engine and affordable small performance cars,

First introduced as a prototype at the 1964 Toyko Motorshow, a year before Toyota were to introduce their 2000GT, the Cosmo was unlike anything ever built by a Japanese car company. Mazda went on to build 80 pre-production prototypes for testing by Mazda engineers and dealers.

The Cosmo was a halo car … it was not designed or built for the mass market.  With just 1519 hand-built between May 1967 and September 1972 -- at a rate of one a day -- the Cosmo Sport 110 is now a very rare and highly desirable collector’s car.

The body is small and very low, and while the cockpit is tiny, the cabin’s large proportion of glass means it feels light and airy. At the time of its introduction it was very high-tech engineering, with the Wankel rotary redlining at 7000rpm -- motorcycle engine territory at the time. The underpinnings featured front disc brakes and De-dion rear suspension.

While at its launch Mazda was not yet exporting cars to Europe (that move began in 1968) or America (commenced in 1970), two Series 1 and six Series 11 did make it to America as new cars, an unknown number to Europe and at least one came to Australia via a Japanese diplomat.

American talk-show host and noted car collector and columnist, Jay Leno recognised the importance and styling uniqueness of the Cosmo and purchased one for his collection. It was his first Japanese car. In obtaining the car Leno beat Mazda USA to the punch as at the same time they were looking to purchase an example for marketing their heritage. Mazda USA eventually managed to obtain one and now use it for test drives by motoring journalists.

While the chance of seeing one on the road is highly unlikely, the DNA of the Cosmo can clearly be seen in the current RX-8.

And 45 years later, Mazda’s philosophy of differentiating themselves from other Japanese brands with iconic sportcars can only be deemed as a definite success. Unlike Toyota and Honda, Mazda’s current cars still reference their heritage and maintain a strong design language.

Cosmo Sports Specifications

Series 1          
May 30, 1967 - July 1968
Type designation - L10A 
Engine Type - 0810
343 made

Series 2          
July 13, 1968 - September 1972
Type designation - L10B
Engine Type - 0813
1176 made

Price at introduction   
1.48 million yen (=$US4100) 1968

Engine 
Wankel rotary configuration
Alloy rotor housings
Alloy side housings
Side intake ports (2 per rotor)
Peripheral exhaust port
Intake   Zenith-Stromberg 4 barrel
Twin Distributor
Two spark plugs per rotor
Twin coils
Capacity           491cc x 2 rotor

Length - 4140

Width - 1595

Height - 1165 mm

Wheelbase - 2200mm

Top speed         200 km/h
0-100 km/h        8.8 seconds

...as the company works its way through the global financial crisis and its high-pressure bid for the Volkswagen group.

"Another model line is not something we are concentrating on at the moment,” Executive Vice-President for Sales and Marketing, Klaus Berning says. "We may start looking at that after the launch of this car (Panamera) but my gut feeling is that we do not need one.

"I am not a magician, I do not know when the world situation will go back to the levels of 2008 — it could be 2011 and it could be 2017, I do not know but when it does I believe we have the potential with the product line we have to grow our sales to 120,000 or 140,000 without having to push for another model.”

At then end of the 2008 financial year Porsche had set a sales record of 98,652 cars worldwide with the three existing model lines — the 911, Boxster and Cayenne. First year production for the four-door GT Panamera has been set at 20,000 with Berning predicting that as many as 80 per cent of those cars will be incremental sales.

"People are constantly asking whether there will be another Speedster small sportscar but there is simply no need for that,” Berning says.

When asked whether it was possible that a four-cylinder Porsche could be in the offing to assist the company with its overall fuel averaging Berning was less dismissive of the idea. "You never say never, but we have not made any decision to go that way.

"It could be possible to have a four-cylinder again in a 911 ... but it would be a Porsche four-cylinder. The 911 is the core of the brand and it follows different rules to the rest of the brand models.”

Berning made it clear that he had no intention of taking questions on Porsche's stalled bid for the VW Group but did say that suggestions that Porsche was facing a total restructure were "totally BS”.

"In the car business we are one of the very few car makers the world over still writing black figures today — in the middle of the biggest recession and without benefiting from the scrappage bonus paid by the government in Germany,” Berning says. "Our operative return on turnover is in the double digit percentage range — a level of profitablity other manufacturers can only dream of.”

With a brand value of $17.5 billion (US) Porsche ranks 35th in the world for all companies and third in the global ranking of car manufacturers behind Toyota and BMW.

"Our brand alone is a precious jewel ... believe me, this small manufacturer of exclusive sporting cars is strong — very strong. I promise you that in a sybiosis with the Volkswagen Group Porsche will retain the independence and freedom we need to continue our success in business.

"Anything else would simply not make sense.”

As the officially `leaked' partial photo of the car shows, the Sportback four-seater has a coupe-like silhouette with hatch-like practicality. The design is clearly aimed at cars like the BMW 5 Series Gran Turismo, Volkswagen CC and Mercedes-Benz CLS, essentially taking the four-door coupe concept a step further.

The carmaker says the idea was to combine the style and sophistication of a coupe with the comfort of a sedan, yet have the versatility of a wagon.

Audi Australia spokesperson, Anna Burgdorf, says the Sportback will be a welcome addition. Audi currently sells about 80 A5s a month and Burgdorf believes the Sportback has the potential to become a popular model like the A3 Sportback.

"There definitely is a market for that type of car," she says.

Audi no longer has an A6 Avant in its lineup, so the A5 Sportback has the potential to slide into this niche as an alternative.

"Of course we still have the A6 Allroad for those buyers looking for something more," she says.

Although prices and specifications have not been announced the hatch is tipped to cost slightly more than the equivalent A5 coupe models, which opens with the $79,900 2.0-litre TFSI.

Audi executives have made no secret of the fact that they wants to lift the brand's passenger car model count from 27 to 40 by 2015 and elevate its status beyond key rivals BMW and Mercedes-Benz in many markets.

Both TDI and FSI engines will be available but the final engine lineup and pricing for Australia is yet to be finalised.

The five-door has a long and tapering roofline with short front and rear overhangs. It sits on a 33mm shorter wheelbase than the A6 sedan and has four frameless doors.

The Sportback's luggage capacity of 480 litres almost equals that in a A4 Avant, with the rear seats in place. With the rear seats folded the Sportback space increases to 980 litres.

All engines meet stringent Euro 5 exhaust emission standards, and diesel versions are equipped with particulate filters. In Europe, two FSI petrol engines and three common rail TDI engines are available, all from the Audi family.

The petrol engines are equipped with the Audi valvelift system producing more power and higher torque but delivering lower fuel consumption. The 2.0 TFSI quattro has a power output of 155kW and 350Nm and the 3.2 V6 quattro generates 195kW. The diesel engines range from a 2.0 TDI up to a 3.0-litre V6. The 2.0 TDI is paired to a six-speed manual gearbox and produces 125kW/350Nm.

It also has a start/stop system to help lower fuel consumption.

The 140kW/400Nm 2.7 TDI and the 176kW/500Nm 3.0-litre V6 TDI and quattro all-wheel drive round out the range.

From November 2011, all passenger cars and four-wheel drives must have ESC as standard. Other vehicles have until November 2013 to make it standard.

The Minister for Infrastructure, Transport, Regional Development and Local Government, Anthony Albanese, says the new regulations bring Australia in line with international standards.

"In fact, we are fully phasing in ESC one year ahead of Europe," he says.

The device is slowly becoming more widespread but remains an option costing up to $1500 on many vehicles. The Federal Chamber of Automotive Industries says Australians clearly want the technology. Almost seven out of 10 new vehicles are being fitted with the device as standard but many brands still ask customers to pay for it in optional ‘safety packs'.

The latest FCAI figures show that 66 per cent of new passenger cars and off-roaders are now fitted with stability control, a 12 per cent increase in the past year.

"Manufacturers and motorists have moved quickly to embrace this lifesaving technology," the FCAI's chief executive, Andrew McKellar says.

McKellar says the car industry has worked with the Federal Government to ensure the technology becomes available as soon as possible.

"It is vital that there are nationally consistent regulations in place for ESC fitting and that these are harmonised as far as possible with international standards," he says.

Safety agencies welcome the decision, saying that the technology is the single-most practical safety advance since seatbelts were made compulsory in the 1970s and airbags became widespread in the 1980s.

Monash University research shows that stability control can reduce the incidence of single vehicle accidents by 27 per cent in cars and 68 per cent in off-roaders.

Stability control uses sensors to compare differences between the car's actual course and the driver's steering wheel input.

If the onboard computer senses that the driver is about to lose control, the system applies braking to individual wheels to bring the car back to its intended course and avoid swerving out of control.

Local carmakers Ford, Toyota and GM-Holden have welcome the move.

GM-Holden chairman and managing director Mark Reuss praised the decision to introduce a standardised national approach to vehicle safety rather than allow a state-by-state rollout.

"Mainstreaming ESC technology in passenger cars and SUVs will save lives, it is as simple as that," Reuss says. Like Ford and Toyota, GM-Holden is committed to rolling out the technology in its next-generation vehicles and adding it to those cars that do not currently have it as standard.

Once the domain of luxury European cars, demand for ESC is likely to accelerate ahead of the deadline as carmakers push to include the lifesaving technology in its vehicles.

Following a spate of problems with paint, rust, brake hoses and front suspensions affecting their vehicles, the Ford owners are angry.

But none are angrier than Tina Heraudeau who is furious with Ford after the front suspension on her Territory collapsed after a mere 14,000 km.

The young Melbourne mum of two is so shaken after the incident late in 2008 that she is now afraid to drive her 2005 model Territory.

"I don't feel safe in it," she told Carsguide. "I'm scared to drive it."

Fortunately the right-front lower control arm ball joint failed at low speed as Ms Heraudeau was pulling away from the kerb, but she now fears it could happen again, this time at a higher speed that could leave her and her family in grave danger.

"I just heard metal crunching on the ground as I pulled out from the kerb," she says.

"I couldn't move it, it was stuck and going nowhere with its nose sticking out in the traffic.

"I looked under the car and that's when I saw that the whole front axle was lying on the ground.

Her concerns were raised when told by a mechanic at her Ford dealer that it wasn't the first ball joint failure he'd seem, before adding that he wouldn't allow his wife to drive a Territory because it wasn't safe.

Further adding to her fears is Ford's reluctance to explain what caused the ball joint to fail and its inability or unwillingness to assure her that it won't happen again in the future now that her car has been repaired.

Ford repaired her car under warranty, no question, but Tina Heraudeau wants the company to assure her that the car is now safe to drive. She has vigorously pursed the company for such an assurance, but so far none has been forthcoming.

"They couldn't confirm to me whether I was driving a safe vehicle," says the frustrated mum. "They couldn't tell me what had happened to my car and why, and they still can't."

In her efforts to get to the bottom of the failure Ms Heraudeau has contacted the dealer, Ford's warranty centre and the company's Customer Service Centre, but with no satisfactory response there she has also been in contact with the RACV and the Victorian Government Consumer Affairs Department, who recommended she contact Carsguide.

Ms Heraudeau believes the Territory's front suspension is flawed, and that the replacement ball joints could just as easily fail as the ones originally fitted on the Ford production line.

Her suspicion is heightened by the fact that the dealer replaced not only the ball joint that failed, but also the one that didn't fail.

The fact Ford changed the design of the front suspension on the recently updated Series II Territory only serves to underline her concerns there is a design flaw in her car.

Ms Heraudeau is not the only Territory owner to have experienced front suspension failure.

The Herald Sun has had numerous reports from Territory owners who have had ball joints fail on their cars, or wear to the point they need replacing at very low kilometres.

Carsguide reader Steve Smith told us that both front ball joints on his 2005 Territory were replaced by Ford under warranty at 45,000km and again at 90,000km.

They also needed replacing at 140,000km, but by then the warranty had expired and Ford refused to cover it.

Smith's Territory has now racked up 170,000km and his dealer has told him that one of the ball joints is showing signs of wear again.

"The ball joints have failed on four occasions," he says.

"Surely this is a design or manufacturing defect that Ford should cover."

Other owners are being told by their dealers the ball joints need replacing when they take their cars in for servicing in the region of 30,000-75,000km, a number have discovered the flaw when they have taken their cars in to have the front brake hoses replaced under the recent recall.

Carsguide understands the ball joint problem is not a new one; that Ford has been aware of it for some time and so far chosen not to do anything about it. An inside source involved in the front suspension design of the Territory who wished to remain anonymous told Carsguide that Ford has known about the issue with the ball joints from early on in the Territory program.

What's more he says it will be an ongoing problem for the rest of the life of the Territory; owners face replacing the ball joints on a regular basis.

While that's an expensive frustration for current owners, particularly once the warranty expires, it's likely to become an even greater safety issue once the cars pass into the hands of inexperienced, younger and sometimes cash-strapped owners who aren't as concerned about having their cars checked and serviced as are owners of new cars.

In a recent meeting with Ford president Marin Burela Carsguide presented him with a fistful of emails from owners expressing their concerns, not only with the Territory ball joints, but also the front brake hoses on the Falcon that are prone to failure, along with rust and paint problems.

In the meeting Burela was urged by Carsguide to initiate a recall on the Territory to fix the front suspension problem, and the Falcon to replace the front brake hoses.

Burela's response was that neither issue had shown up as a problem on Ford's field monitoring system, which he assured Carsguide was the most sophisticated in the industry, one that would surely identify a problem if it existed.

As an example he told Carsguide he authorised the recent recall on the Territory's front brake hoses when the monitoring system only showed a failure rate of around two per cent, even though he felt the failure rate wasn't high enough to justify a full recall.

What he failed to say was that while two per cent seems a very low failure rate when it's just a number in a report, it actually represents something in the order of 2000 cars that have suffered a brake hose failure.

When questioned over the thoroughness of Ford's testing regime Burela claimed it was the most stringent of any used by carmakers around the world.

But he couldn't explain why the same system didn't identify a problem with the Falcon rear brake hose that went into production when it was too short and failed as a result.

That failure caused Ford to issue an alert to dealers to replace the Falcon rear brake hoses when cars came in for service.

Owners knew nothing of the potential problem that could severely reduce the braking power of their cars at any moment, and owners who chose to have their cars serviced at places other than Ford dealers were left out in the cold.

Burela's claims that his company's testing regime is beyond question are also questionable in the light of the Territory front suspension problem.

Ford's testing regime failed Tina Heraudeau and her family, and every Ford owner, as did the company's field monitoring system that has failed to identify problems that clearly exist on the Falcon and Territory.

Perhaps it's a case of too many statistics and too little concern for the plight of owners like Ms Heraudeau who simply wants to know she is driving a safe car, that the children are not being put at risk when she's driving them to school in her Territory.